What is PIDIREGAS?
PIDIREGAS, long-term productive infrastructure projects, are an important component of Petróleos Mexicanos and its subsidiary entities capital expenditures. The distinction between the PIDIREGAS and non-PIDIREGAS expenditures is an important one for budgetary purposes, as a project’s designation as a PIDIREGAS guarantees that the financing of a project is immune from across-the-board budget cuts. PEMEX funds its annual budget (not including PIDIREGAS) through revenue generated by our operations and financing activities. Capital expenditures are undertaken by Petróleos Mexicanos and the subsidiary entities. Capital expenditures and operating expenses must be authorized in our annual budget, which is approved by the Mexican Congress. PIDIREGAS are funded through financing activities of the Pemex Project Funding Master Trust, the Fideicomiso (Trust) F/163 or directly by a contractor, and must be authorized in the budget approved by the Mexican Congress. Due to federal budgetary constraint