1,3-Butadiene is an important feedstock in the production of rubbers and plastics, such as styrene butadiene rubber, polybutadiene rubber, and styrene butadiene latex. As the cracker feedstock around the globe is trending toward lighter feedstock from shale and natural gas, the sustained production of 1,3-butadiene in olefin plants, which is traditionally made via naphtha cracking, is facing big challenges. In this research, it is shown that 1,3-butadiene can be produced from natural gas via a novel integrated plant. The manufacturing process consists of the following steps: (1) conversion of natural gas to methanol, (2) conversion of methanol to ethylene, and (3) conversion of ethylene to 1,3-butadiene. The ASPEN Plus environment is utilized to simulate the overall plant, and the predictive capabilities of this model are tested by comparing the results from experimental data from individual plants. Then, energy-saving and capital cost reduction opportunities are explored by utilizing heat integration tools.