A new direction of researches is the development of the methods to find effective technologies for natural gas processing. The practical interest to this researches is stimulated by the current situation when the degree of natural gas processing in valuable chemical products remains on a low level. However, the problem of an effective and economic way of natural gas conversion has not been solved yet. In this connection, the possibility of employing various sources of non-equilibrium plasma for natural gas processing has been extensively studied. In recent years, the plasma sources based on the principle of electromagnetic induction are receiving increasing attention due to their great promise in plasma-chemical technology. For optimization of the chemical reactor parameters, an accurate modeling of physical processes and interaction between the electromagnetic field and plasma is necessary. In this paper, we consider a steady-state inductive discharge initiated in methane. The gas pressure was on the order of 10 and 100 Torr. Non-equilibrium methane plasma kinetics includes a variety of elementary processes- excitation-de/excitation of the molecular levels, ionization and dissociation together with generation of radicals. On the basis of the numerical calculation of the Boltzmann equation, the rates of the kinetic processes and basic plasma parameters are determined. Using density balance equations, the concentrations of the radicals in methane plasma are calculated. The results of the calculation are used for the chemical reactions simulation. As the result we have obtained, that methane conversion in this reactor achieved 15%. Hydrogen, ethane, acetylene are the main products of the process.