According to our recent publications on the methane combustion over Pd catalyst, the mechanism showed that methane is dissociatively adosrbed on pd metal sites and then the adjacent PdO (oxide phase) oxidize methane to syngas (in case of lean conditions) as shown in Eq.1
PdO +CH4 ---------- CO+ H2
However, in case of oxygen rich condition, total oxidation occur as in Eq. 2
3PdO +CH4 ---------- CO2+ H2O
Please find the attached paper that might be helpful