A new method for optimising process networks is presented in this paper. The method uses economic analysis of existing systems based on the new value analysis method (Ph.D. Dissertation, UMIST, Manchester, UK, 2002) as the basis to derive the optimum network design. The analytical optimisation method comprises of three steps. Market integration is the first step that fully exploits the available market opportunities for selling and purchasing streams based on individual marginal contributions from productions and processing of streams. Market integration is an easy and straightforward way of achieving quick benefits. The second step deals with optimisation of network flowsheet/connections. The economic margins of various paths of network are used to determine the weaker paths and the stronger paths where the loads of weaker paths can be shifted. This load shifting among paths leads up to the overall benefits of a system. Finally, the non-profitable or less profitable process units are optimised to improve their individual marginal contributions. Analytical optimisation turns the traditional back box approach into a clear and transparent procedure and is simple to understand and easy to use. The application of analytical optimisation is demonstrated with industrial cases from refining. In the end, a generalised methodology has been illustrated on how to design the optimum flowsheet of a petrochemical complex in a changing market price scenario. (C) 2004 Elsevier Ltd. All rights reserved.