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A novel catalytic converter technology, employing periodical reversal of gas flow through the oxidation catalyst monolith, is being developed for treatment of exhaust gas from diesel engines fueled by natural gas in combination with diesel fuel. This technology allows to trap heat energy inside the monolith and thus efficiently destroy methane at converter inlet temperature as low as ambient. This paper describes the results of the initial stage of the converter development, including development of the mathematical model, computer simulation, and prototype testing. Simulation results indicate that dual fuel engine equipped with the reverse-flow converter could exceed the required destruction standards for hydrocarbons, including methane.