The disclosure describes an engine system having liquid and gaseous fuel systems, each of which injects fuel directly into an engine cylinder. A controller monitors and controls engine operation in a normal mode, during which the engine produces rated power, and in a limp-home mode, which is used when an abnormal operating condition of the gaseous fuel system is present. During limp-home mode operation, the engine uses more liquid fuel and less or no gaseous fuel relative to the normal mode, and produces power that is less than rated power.