Improved design of a catalytic method and reactor for the production of methanol at equilibrium conditions, whereby methanol, as it is formed, is separated from the gaseous phase into the liquid phase within the reactor without reducing the catalytic activity of the methanol catalyst. This is achieved by adjusting the boiling point or temperature of a liquid cooling agent being in indirect contact with the catalyst particles and by providing a specific ratio of catalyst bed volume to cooling surface area. Thereby, condensation of methanol as it is formed in the gaseous phase takes place for the most at the cooling surface arranged evenly distributed within the reactor and if at all within a very limited region of the catalyst bed.