The identification of methane hydrate behavior in porous mediais one of the most challenging yet rewarding pore-level visualization and simulation tasks. The hydrate morphology influences the physical characteristics of the host sediments as during the hydrate formation and dissociation processes the pore space and flow pathways constantly evolve. Here, a direct three-phase pore morphological simulation approach is proposed, verified and utilized to simulate hydrate deformities and predict fluid occupancies and absolute and effective permeabilities of hydrate-bearing geological formations. The proposed technique simulates capillary-dominant displacements by applying a set of geomaterial rules directly to the pixels of pore-level porous media images. The case studies are sandy microstructures generated based on the particle size distributions of the Mallik gas hydratedeposit. The fluid occupancy profiles, absolute permeability, and hydraulic tortuosity curves are comparable with the experimental datasets. The sensitivity analysis shows that although the gas relative permeability is less sensitive to the hydrate specifications, the porosity, grain size distribution, and hydrate content and occupancy remarkably influence the rock absolute permeability.