We've been having various discussions about compressed natural gas around here lately. Converting methane to a liquid fuel is an attractive option.
Here is an excerpt from Technology Review & of course a link
A new catalyst for converting methane, the main component of natural gas, into a liquid fuel--methanol--has
been developed by researchers in Germany. The catalyst could make
direct conversion of methane to methanol cheaper than it is with
existing catalysts, but it will likely fall short of a holy grail of
hydrocarbon chemistry--a catalyst that allows natural gas to replace
petroleum fuels on a large scale.