The specification discloses a process for the production of olefins, including ethylene, propylene and butenes, from methane, the process comprising first, second and third reaction steps operated in tandem. In the first reaction step, hydrogen chloride, perchloroethylene and oxygen are reacted in the presence of a catalyst, using methane as a diluent, to yield hexachloroethane and water. In the second reaction step, the hexachoroethane from the first reaction step is reacted with methane to produce methyl chloride, hydrogen chloride and perchloroethylene. In the third reaction step, the methyl chloride from the second reaction step is reacted to give the desired olefins and hydrogen chloride. By recycling the perchloroethylene from the second reaction step and the hydrogen chloride from both the second and third reaction steps to the first reaction step, a balanced process is achieved that is self-sufficient in chlorine values.