The process feasibility analysis on the liquid phase methanol synthesis (LPMeOH) process was performed in an entrained slurry reactor system. In this three phase mini-pilot plant system, finely powdered catalyst is slurried in the inert oil phase and this catalyst-oil slurry is continuously recirculated through the entrained reactor, where it is contacted with the cocurrent flow of syngas to form the product methanol. The effect of various operating conditions which included the reactor temperature, the reactor pressure, the flow rate of catalyst-oil slurry, the flow rate of syngas, the slurry holdup tank pressure, the syngas composition, and the catalyst loadings in slurry, on the productivity of methanol in the reactor was studied. Using the operating conditions, a statistical reaction rate model not based on the kinetic mechanism, was developed to predict the productivity of methanol in an entrained reactor. The rate of production of methanol predicted by this model agreed well with the experimental results. This statistical model assists in the development, scale-up, and commercialization of the methanol synthesis process in an entrained slurry reactor.