Even if huge efforts are made to push alternative mobility concepts, such as, electric cars (BEV) and fuel cell powered cars, the importance and use of liquid fuels is anticipated to stay high during the 2030s. The biomethane and synthetic natural gas (SNG) might play a major role in this context as they are raw material for chemical industry, easy to be stored via existing infrastructure, easy to distribute via existing infrastructure, and versatile energy carrier for power generation and mobile applications. Hence, biomethane and synthetic natural gas might play a major role as they are suitable for power generation as well as for mobile applications and can replace natural gas without any infrastructure changes. In this paper, we aim to understand the direct production of synthetic natural gas from CO2 and H2 in a Sabatier process based on a thermodynamic analysis as well as a multi-step kinetic approach. For this purpose, we thoroughly discuss CO2 methanation to control emission in order to maximize the methane formation and minimize the CO formation and to understand the complex methanation process. We have considered an equilibrium and kinetic modelling study on the NiO-SiO2 catalyst for methanation focusing on CO2 derived SNG. In this work, a comprehensive thermodynamic analysis of CO2 hydrogenation is preformed to define the optimum process parameters followed by the kinetic simulations. Further, the simulations can be performed at various conditions, for example, catalyst mass, mass flow, pressure, temperature etc. to optimize the methanation process.