LNG imports in northwest Europe are expected to remain strong through 2017 and then increase further in 2018, as Europe will need to absorb the growing wall of new LNG supply. Russian attitude towards market share will be a key determinant of price formation in Europe. In power, higher fuel prices will increase 2017 UK and German base load prices compared to last year. However, rising renewables output will counter this effect, to some extent, leading to tighter margins. UK coal generators – also under pressure from high carbon prices – as well as German gas-fired plants will suffer. This report includes an outlook for European gas balances and forecast North West European gas and power prices out to Q4 2018.