Ni-CeO 2 is ah ighly efficient, stable and nonexpensive catalyst for methane dry reforming at relative low temperatures (700 K). The active phase of the catalyst consists of small nanoparticles of nickel dispersed on partially reduced ceria. Experiments of ambient pressure XPS indicate that methane dissociates on Ni/CeO 2 at temperatures as low as 300 K, generating CH x and CO x species on the surface of the catalyst. Strong metal-support interactions activate Ni for the dissociation of methane.T he results of density-functional calculations showadrop in the effective barrier for methane activation from 0.9 eV on Ni(111) to only 0.15 eV on Ni/ CeO 2Àx (111). At 700 K, under methane dry reforming conditions,nosignals for adsorbed CH x or Cspecies are detected in the C1sXPS region. The reforming of methane proceeds in ac lean and efficient way.