Is it possible to create fire-effects like the Smaug scene in Lake-Town?

Your best bet then would be to dive into cascade and learn how to work with particles in Unreal. Fluid grid simulations like that blender example are cool when you can do them offline, but are not really an option in realtime. Something like Flameworks might become viable at some point in the future, but at this point these kind of solutions tend to cost way to much and have to be done so low res that a classic particle based approach will probably look better in most situations.