Reactions between dilute methane and nonenergetic hydroxyl radicals were carried out at 3.5 K. The temperature was kept low in order to characterize the stepwise reaction and prevent parasitic side reactions. The hydroxyl radicals originate from discharged H2O/He mixtures. The reactions were monitored in situ using a Fourier transform infrared spectrometer. The formation of CH3 radicals was confirmed simultaneously with the formation of water ice. Subsequent recombination reactions lead to the formation of ethane (C2H6). Production of ethane and water ice occur preferentially to the formation of methanol.