The refinery, costing 9.1 billion U.S. dollars, will be built in Tula providing the regional government secures the necessary land in 100 days, Pemex's chief executive Jesus Reyes Heroles said.
Tula, just 50 km northwest of Mexico City, meets Pemex's most important criterion: closeness to the nation's biggest market for fuel.
The town has already a refinery, which had been programmed for upgrade costing around 4 billion U.S. dollars.
But Heroles said if Hidalgo cannot provide the land before the deadline, then the refinery will go to a second choice, adding the option could be Guanajuato city Salamanca.
The ruling National Action Party assigned Pemex last year to build a new refinery, as part of its campaign for an energy reform which was passed by national legislature.
Pemex, the only company allowed to import and refine crude oil by law in Mexico, produced 451,500 barrels of gasoline a day in 2008.
