(Adds details, background)
By Alberto Sisto
ROME, Nov 30 (Reuters) - Algeria will pull out of the planned Galsi gas pipeline to Italy if Rome backs rival South Stream and Trans Adriatic Pipelines (TAP), according to two Italian sources, who said the decision had been communicated to Prime Minister Mario Monti this month.
"Algeria said that it does not see the right conditions for investment if Italy backs South Stream and TAP. That was the answer Monti got during his visit to Algiers in the middle of the month," one of the sources said.
Monti made a one-day visit to the Algerian capital on Nov. 14 where he met President Abdelaziz Bouteflika and Prime Minister Abdelmalek Sellal.
The version was confirmed by a second Italian official with knowledge of the case, although an industry source said the delay to the project had been caused by uncertain market conditions.
The launch of the project was expected for mid-November but the start date was delayed because of problems with securing authorisation from local authorities in the Tuscany region of central Italy, where the pipeline would come ashore.
The 8 billion cubic litre Galsi pipeline had already been delayed due to delays in obtaining the necessary permits.
Shareholders in the project include Algerian group Sonatrach as well as Italian groups Edison
Algeria already provides Italy with around 35 percent of its imported gas, most via an existing pipeline through Tunisia and under the Mediterranean.
Italian energy giant Eni
Preparations for the TAP project that will link Italy, Greece and Albania are under way with a final decision expected by the end of the year.
(Writing by James Mackenzie; editing by James Jukwey)
((james.mackenzie@thomsonreuters.com)(+39 0685224351)(Reuters Messaging: Reuters Messaging james.mackenzie.reuters.com@reuters.net))
Keywords: ITALY ALGERIA/PIPELINE
