The chemical methanation of CO2 may become a ubiquitous process for the production of renewable substitute natural gas from any CO2 source coupled with renewable hydrogen. The produced gas can be fed into the natural gas pipeline or used as fuel. Over the past few years, great efforts have been made in developing the process of CO2 methanation. In this paper, the chemical methanation, which is the most common process, is reviewed. The purpose is to present a comprehensive updated review of the process. The CO2 methanation, covering the process mechanisms, thermodynamics, catalysts, kinetics, and reactors are discussed with the aim to outline the pathways for the future development of the methanation process.