This final technical report covers the work performed between September 1, 1980 and November 30, 1981 relating to Chem Systems'Liquid Phase Methanation/Shift Process. A total of 44 runs were completed covering testing of five commercially available catalysts at 900/sup 0/F, 1000 psig and 10,000 h/sup -1/ VHSV. The shifted methanation feed gas consisted of 63% H/sub 2/, 19% CO, 2% CO/sub 2/ and 16% CH/sub 4/. To determine the effects of steam, twenty of the scans had 15% steam injected into the feed gas. Each test ran for 100, 300, 600 or 1200 hours with continuous effluent sampling and temperature profile monitoring. At each of the termination points, a catalyst sample was taken from the hot spot section of the bed for analysis. Carbon was deposited on the catalyst under the methanation conditions studied. The rate of carbon deposition was primarily a function of catalyst properties and not of the thermodynamics of the methanation reaction system. In spite of heavy carbon deposition, the catalytic behavior for these systems generally remains unaffected. Physical plugging of the catalyst bed is the limiting condition of the process and not catalyst deactivation. In this respect, a controlled oxidation of the carbon deposits is a viable method of extending catalyst life. The hydrodynamics and design of a cold-flow test unit for a three-phase, liquid-fluidized bed for Liquid Phase Methanation/Shift was evaluated. The cold-flow unit process design, equipment take-off lists, construction cost and timing schedule are included. As a second potential application, the unit was designed for hydrodynamic studies of a liquid-entrained system for Liquid Phase Methanation/Shift.